Sundance takeover falls through
Shares in the iron ore miner instantly plummeted following news that the deal was dead.
Sundance was the worst performing stock on the ASX 200 on Tuesday. Its shares plunged 10¢, or 47.6 per cent, to close at a four-year low of 11¢. The plunge wiped $307.2 million off the company's market value. The stock had not traded since March 19 when it fetched 21¢ a share and at that price Sundance's market capitalisation had already halved since December.
Almost 21 months after a full takeover was launched by Hanlong, Sundance confirmed on Monday evening that the company had terminated its agreement with the Chinese group after it became clear Hanlong could not meet its funding obligations.
The parties had been locked in intense negotiations for several weeks in a bid to salvage a deal, but the termination means Sundance shares will resume trading on Wednesday.
The takeover had appeared destined for failure for several months after Hanlong missed many deadlines to provide evidence of its ability to finance the deal, which was designed to give Hanlong control of Sundance's iron ore project in Africa.
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Sundance Resources confirmed the takeover bid by Chinese group Hanlong has failed. The company terminated the agreement after it became clear Hanlong could not meet its funding obligations.
Sundance shares plunged sharply — down 10¢ or 47.6% to close at a four‑year low of 11¢. The stock was the worst performer on the ASX 200 that day.
The share plunge wiped about $307.2 million off Sundance's market value.
Sundance terminated the agreement because Hanlong repeatedly missed deadlines to provide evidence it could finance the deal and ultimately failed to meet its funding obligations.
The full takeover was launched almost 21 months earlier, so the process had been ongoing for about 21 months before termination.
Sundance confirmed that, following termination of the agreement, its shares would resume trading on Wednesday.
The takeover was designed to give Hanlong control of Sundance's iron ore project in Africa.
Sundance shares had not traded since March 19, when they last fetched 21¢. At that price the company's market capitalisation had already halved since December.
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